<i>Ultimately it comes down to the question of "exit". As a founder, I have no interest in exit or liquidity. I am in business to run a business, not to run away from it. Or as Warren Buffet puts it: Our favorite holding period is forever.</i><p>I often get the impression that many people in the tech industry have not internalized that it's possible to make a successful business (and a lot of money) without taking investment. Or that it may be desirable to run and grow a business over a long time period like decades.<p>While I don't have hard facts on this, I would expect that more entrepreneur wealth has been created through running businesses instead of exiting. Of the wealthy people that I personally know, this statement holds. But it seems reinforced regularly, for example with Gabriel's post yesterday analyzing how an entrepreneur would go about pocketing $5 million pre-tax on an exit.
Zoho had the good fortune (and foresight) to venture into an area that no one took seriously. Namely Web Apps. Because of that they’ve had time to slowly build, not take VC money and experiment. But I don’t think that’s true of every company and to be honest I don’t think it will be true of Zoho for much longer. <p>Because while I still consider Google’s products inferior that gap is closing quickly. The drive for profit often runs hand-in-hand with innovation and companies whose competitors innovate quicker than they do tend to die. <p>I’m someone who has always been a fan of both Zoho the company and their products. So much so that I actually sent a fairly embarrassing e-mail pleading with Zoho to implement a feature I needed so I could steer my company in their direction.<p>But instead I’m planning to role out Google Docs to a first round of users next month. The feature I needed was reasonably obscure so I don’t think this spells doom for Zoho but it’s still alarming when one of their most ardent supporters is pushed into the hands of their competitors for lack of features. It makes me wonder whether they could have implemented that feature if they’d taken VC money.
I thought zoho was started by a company with 9 figure revenue already? It's not like they started zoho out of a bedroom.<p>I.e. they are the same people behind www.manageengine.com www.webnms.com etc.
Sridhar - what would you have done had you been in Tony Hsieh's shoes?<p>Also, it is a bit easier for you since you're SaaS business and so don't need VC or a line of credit to maintain inventory like Zappos did...
It's strange how VCs always want to try their luck to hit up startup who are already doing well. They an't stupid too, no way they are going to sell out now. Why not be an angel instead? So much easier, stuffs like video, mobile and advertising will definitely be huge in the years to come still. Go out do some homework and approach those founders instead.
Or even better, with all your VCs funding, start your own labs. U have no idea how many smart people are there in USA for hire still.